Which of the Following Statements Is the Best Description of Discharge

question 26

Multiple Choice

Which of the following statements is the best description of discharge by novation?

• A)One party leads the other to reasonably believe that strict performance will not be insisted upon.
• B)A new agreement is substituted for the old by the parties.
• C)Both parties abandon their original agreement while it is still executory.
• D)A party who has already performed their obligation agrees to relieve the other party from performing their obligation in return for their doing something different.

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Definitions:

Wage Bracket

A range or category of income levels used to calculate tax withholdings or determine pay scales based on earnings.

Withholding Table

A chart or table used by employers to determine the amount of tax to withhold from an employee's paycheck based on earnings and tax status.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate over a specified period.

Interest Expense

The cost incurred by an entity for borrowed funds, considered a non-operating expense on the income statement.